My 2011 e92 (prod 5/10 no Nav base stereo) has USB integration option and the only way I can hook up iPhone is to use the y-cable, which does not work with iPhone 5, but is in the works. I had a loaner e90 2011 328i with same stereo (base or may have been hifi), no navigation and I was able to have my iPhone 5 connected using just the apple cable..

I did use the search function, and the only thing I came up with is "enhanced bluetooth" option, which according to the original sticker I have..

So can someone please articulate the differences? I am confused (nothing new on a monday)...

I basically repurposed my old iPhone 3gs to be quasi permanent option on my iS.. It gets annoying when I forget to charge my phone the night before and end up unplugging 3gs and plugging iphone 5 using apple cable. It does charge it, I just cant access any of my tunes..

Do you know if there are actually hardware differences with later built 2011 models, or is it just newer software that allows that? It would be interesting to see if older 2011s can be reprogrammed to elimiate the need for the "Y" cable...

I basically repurposed my old iPhone 3gs to be quasi permanent option on my iS.. It gets annoying when I forget to charge my phone the night before and end up unplugging 3gs and plugging iphone 5 using apple cable. It does charge it, I just cant access any of my tunes..

Do you know if there are actually hardware differences with later built 2011 models, or is it just newer software that allows that? It would be interesting to see if older 2011s can be reprogrammed to elimiate the need for the "Y" cable...

It's effectively only a software difference, but it's embedded software, and not embedded software BMW is prepared to update.

Basically, if you were a BMW design engineer, you could probably make it work, but otherwise you'd need to retrofit updated electronics.

EDIT: for the record, the hardware even in my '09 MULF SHOULD be capable of USB streaming from iOS, although it might possibly be a bit too slow to handle it. But there's no software that exists for those electronics to make it happen.

Your 335is does not have the combox that was added to 09/10 and later production. I too have a pre 09/10 335is and own an iPhone 5. I just bought the lightening adapter to 30 pin dock connector and it allows me to connect the iPhone 5 to my car. I can still stream Pandora through the iPod integration and it displays the artist info. As a note, if your iPhone case is protecting the connector and speakers on your iPhone, you should get the lightning cable to 30 pin dock connector instead of the small adapter; with the adapter, you have to take your iPhone out of the case to be able to plug it in.

Tried what? The adapter+Y cable? If you have a combox, the normal USB cable will work (though the Y should too, I think). If neither the normal USB nor the lightning adapter+Y work, you've got a jacked up Y cable.